WELCHE RAHMENBEDINGUNGENBRAUCHT EIN STARKESINNOVATIONSLAND?

WKO INNOVATIONSTAG 2021, 4 FEBRUAR 2021

DR. HERMANN BRAND, DIRECTOR EUROPEAN STANDARDS AFFAIRS, IEEE

BEFORE WE GET STARTED

Note 1:

All slides are in English

Note 2:

“At lectures, symposia, seminars, or educational courses, an individual presenting information on IEEE standards shall make it clear that his or her views should be considered the personal views of that individual rather than the formal position, explanation, or interpretation of the IEEE.”IEEE-SA Standards Board Operation Manual (subclause 5.9.3)

2

AGENDA

• Some reflections on ‘Innovation’

• ICT is in the driver’s seat

• Innovation – an eco-system challenge

•

• Some success factors for innovations in a networked world

• Wrap up and take away

3

ABOUT ‘INNOVATION’

4

INNOVATION – IN SIMPLE TERMS AND MORE

• Literally – improvement, renewal, …, etc.

• Applied to processes, technologies, products, services, business models, …., society

Distinction 1: research versus innovation

• Research: transforms money into know-how

• Innovation: transforms know-how into money

Distinction 2: technology versus product

• A technology does not have a value as such.

• Its value results from being integrated into a successful commercial product or service

5

ICT IS IN THE DRIVER’S SEAT

6

ICT: A GENERAL PURPOSE TECHNOLOGY

• Digitization = the conversion of analog information into digital data (i.e. binary format), BUT:

• ICT is more - all about storing, communicating, and processing digital data

• Digital data may represent all kinds of information: numbers, voice, audio, pictures, videos, …, and also tickets, newspapers, books, money, …, everything

• Digital data are therefore exchanged and processed for many different purposes• Make phone calls• Watch films• Calculate and simulate real world phenomena

• The disruptive potential of ICT results from its nature as a general purpose technology

7

ICT: NEW ICT CAPABILITY LEVEL

• Data is exploding at unprecedented speed since whatever can be digitized has been and is digitized

• Whatever can be connected is and will be connected• Processing power continues to grow exponentially (Moore’s

law – still)

• ICT drives the Digital Transformation of businesses and society

8

ICT resources

(General Purpose):

• Storage (data),

• Processing

(algorithms),

• Connectivity

(communication)

Exponential,

combined, recursive

advances of ICT!!

Technology

drivers:

5G, WiGig,

IoT,

Big Data,

Blockchain,

Cloud

Computing,

AI,

ICT: NEW WAVE OF CONVERGENCE …

9

Shannon

Information theory

Cyber space

Informing

Communicating

General purpose (horizontal)

Short life cycles

Wiener

Control theory

Real world

Deciding

Doing/Acting

Specific purpose (vertical)

Long life cycles

Processing of

information

Operation of

equipment

… results in Automation of everything

Mixed Reality/Cyber Physical Systems

ICT MARKETS ARE DIFFERENT

• Information and network economy is characterized by ‘positive feedback’

• ‘positive feedback’ results from ‘network effects’ (aka as ‘network externalities’ or ‘demand-side economies of scale’)

• ‘network effect’: the value of a networked service for one user depends on the number of users of the service

• ‘positive feedback’ makes the strong grow stronger and the weak grow weaker (the winner takes it all)

• Markets with strong positive feedback are said to be tippy (monopoly rather than oligopoly)

• ICT markets are global by its nature (anyone, anything, anywhere, at any time)

10

INNOVATION –AN ECO-SYSTEM CHALLENGE

11

INNOVATION ECO-SYSTEM

12

Technology

Business/Markets

Policy/Society

IoT, information models, blockchain, cloud computing, recurrent Machine Learning,Deep Artificial Neural Networks, Artificial (General) Intelligence, Affective Computing, Mixed reality, Quantum computing …

Outcome economy,Platform business,Sharing economy, Attention economy, Level playing field, vendor lock-in, customer choice, …

Protect health and public safety,Improve quality of life, protect the environment,(Un)Employment,Human augmentation,Human rights, Alignment with moral values and ethical principles, indigenous Industry policies, …

STANDARDIZATION IS THE GLUE (1) – TECHNOLOGY

13

Without standards …

your ICT devices would not work

STANDARDIZATION IS THE GLUE (2) – BUSINESS

14

Without standards …

you could not afford them

STANDARDIZATION IS THE GLUE (2) – POLICY

15

Without standards …

you could not buy them

WHY?

16

BECAUSE

• Standards enable interoperability of products and services

• Standardization is a business development tool to structure value chains and create markets as large and homogenous as possible to allow for economies of scale

• Standardization may support regulation/legislation. Thus compliance with standards may imply the right to place a product on the marketand to offer it for sale.

17

NOTE: Different approaches co-

exist in EU, US, Asia, Africa,

…

SUCCESS FACTORS FOR INNOVATIONS IN A NETWORKED WORLD

18

( 1) THINK BIG – GRASP CROSS-SECTOR OPPORTUNITIES

• Be an attractive prospective partner (win-win)• Build upon strength• Be a champion in something specific (technology and/or market

leader, no problem with niches)

• Think big and identify cross-industry sector opportunities

• What is the purpose of a stand-alone product• What about a better service for this purpose

• Example: car -> mobility: Mobility-as-a-Service (MaaS)

19

SMARTER CONNECTED AUTOMATED CAR …

20

… AS PART OF A NETWORKED SERVICE

21

(2) MAXIMIZE THE VALUE OF YOUR TECHNOLOGY

• Complex new services (e.g MaaS) and products (autonomous vehicle) require the seamless integration and smooth interactions between standardized components

• No firm is usually strong enough to dictate technology standards. So build alliances and cooperate to set the standards – locally, regionally, globally

• Coordinate product design because multiple products must work together

• Standards are a means to increase the value of your technology, reduce uncertainty and vendor lock-in

• Remember: maximize the value of your technology not your control over it

• Remember: get a smaller share of a much larger market

22

GROW YOUR MARKET - STANDARDS CREATE DEMAND

• If you are hungry, how does the value of a whole personal pie compare to a slice of a much larger pie?

• In many industries, customers are increasingly reluctant to invest in equipment with proprietary standards. The market (pie) will get much bigger after a global standard is adopted

23

DANCE WITH COMPETITORS

(3) STANDARDS IN A PRODUCT DEVELOPMENT LINE (1)

• A good Standard does not specify implementation details or constraints but allows differentiation and competition

• Implementers need to know what to implement without describing how

• Note: success and failure are driven as much by customer expectation as by underlying value of the product

24

STANDARDS IN A PRODUCT DEVELOPMENT LINE (2)

Normative Requirements

Product Specification

Implementation (S/W – H/W)

Final Product

The equipment SHALL output ‘Hello World’ as a welcome

Conformance

25

By courtesy

of Anthony

Wiles, ETSI

HELLO WORLD PRODUCTS

26

By courtesy

of Anthony

Wiles, ETSI

(4) OPEN VERSUS PROPRIETARY IMPLEMENTATIONS

Proprietary

(closed)

interface(s)

Proprietary functionality =

product Added Value

Proprietary

( ‘open’)

interface(s)

Implementation of non-

normative functionality

Normative

(open)

interface(s)

Implementation of (normative)

behaviour (functionality)

associated with the interface(s)

TS 123

Standards

Product

TS 1-2-3

This could be an Open Source implementation

… or even this … but not this

27

TAKE AWAY

• Mind the difference: research versus innovation, technology versusproduct

• ICT is in the driver’s seat • ICT is disruptive: general purpose technology and tippy markets• ICT drives innovations in all industries and in society

• In a networked world innovation is an eco-system challenge• 3 dimensions: technology – business/markets – policy/regulation• Coordination through standardization

• Innovation versus progress - a societal challenge? This is another story.

28

THANK YOU

29

CONTACT

Dr. Hermann Brand

European Standards Affairs Director

IEEE Mobility Practice Lead

IEEE Technology Centre GmbH

Heinestrasse 38, 1020 Vienna

Austria

+43 1 213004 331

h.brand@ieee.org

www.ieee.org

30

QUESTIONS?

31